Gold Market Wire
News, analysis and commentary for gold traders and investors
Gold Market Update
Gold Turns to the Upside
December 7, 2020 - (Gold Market Wire) - The potential for a Gold slingshot was almost down and out for the count - - but has suddenly come roaring back into life, with a "buzzer beating" turn around. Just when it looked like the market was going to head towards the next Fibonacci retracement level at $1670.48, and the Friday close failed to hold, the market tore through the important $1850 level. That was the level which, when we breached it on the down move, brought in the rash of selling. Bettering it is a move that shows that the market has strength. The rising downtrend we saw confirmed with the Friday close has been negated.
This morning we identified that, for a slingshot to take place, the market had to move...and move quickly. It has. That is a big positive. The slingshot would have been timed out quickly, and now it remains alive. Equally, we identified the importance of the $1850. No rocket science there - its a big level, with a "bit of a previous". Lastly, we mentioned last week, the resistance band in the $1850-65 level as being the last hurdle we need to cross to get us properly bullish. Well, we have stopped right there. It is the last hurdle to overcome, before we start to think about putting on length.
The market is choppy no doubt. That is unlikely to end anytime soon. Although no more than opinionated commentary, the encroaching denoument of the US Presidential electoral disaster is about to unfold, and there is little to suggest that the outcome will be anything short of disastrous, no matter who is finally President. That is a big tailwind for Gold. The country is descending into mayhem.
Equally, Europe teeters on the verge of catastrophe. The riots in France seem to go up a notch in intensity every week. A state of low-intensity civil war is now in existence - and is ready to boil over. France is the political lynchpin of the EU project. Without it, there is no EU. That is how serious the situation has become. If France descends into full revolution - and it is looking increasingly likely, the cascade of revolution will likely spread, probably into Spain, even into Germany. Then all bets are off. A crackdown by the military can solve nothing at this stage, but will merely serve to further inflame the situation further. Europe, like United States, is on the precipise of societal meltdown.